Daqo to provide 41,000 MT of polysilicon to leading 210mm wafer producer TZS

• Major China-based polysilicon manufacturer Daqo New Energy has signed a three-year high-purity polysilicon supply arrangement with Zhonghuan Semiconductor (TZS), completing 41,000 MT.

Daqo will certainly report 2020 monetary outcomes following week and also is anticipated to confirm polysilicon production reached within the range of 76,700 MT to 77,200 MT last year, compared to its nameplate capacity of 70,000 MT.

Although Daqo did not reveal the annual supply volumes to TZS, management had noted in their third quarter profits conference call that any kind of brand-new supply agreements would certainly have lower volume shipments in the initial year with greater levels offered in subsequent 3 or four year agreements, due to capacity restraints.

Daqo already has plans in place to increase polysilicon production at its significant plant in Xinjiang by a more 35,000 MT to 40,000 MT at an expense of around RMB5.0 billion (US$ 773 million). Formerly, Daqo has actually been able to increase capability within twelve month at the Xinjiang plant.

Because of polysilicon supply constraints in China, major buyers have moved quickly to safeguard huge amounts of polysilicon through the next 3 years. New plant growths to have actually started last year are limited, and also those would take about two years to construct as well as ramp to volume production.

Daqo's major supply deals include JA Solar, LONGi Green Energy Technology as well as Trina Solar, all significant 'Solar Module Super League' (SMSL) members and also integrated wafer producers.

No monetary information were revealed regarding the TZS deal.